Enterprise and Marketing LO3 MCQ

Which of the following is a word which describes a growing economy?

• Boom

• Decline

• Recession

• Slump

Which of the following is a legal external factor which could affect product development?

• Copyright challenge

• Economic recession

• Interest rate rise

• Launch of a new mobile operating system

Which ONE of the following is an external factor that could impact on product development?

• Departmental communication

• New legislation

• Staffing costs

• Store layout

A restaurant has created a new pizza dough recipe for their pizzas. Which ONE of the following is a legal issue they need to consider to protect their new pizza dough recipe?

• Business plan

• Discrimination

• Inflation

• Patent

Which of the following is an aspect of the design mix model that contributes to the successful design of a new handbag?

• A design which has an appealing appearance

• A design which is cheaply priced

• A design which is produced by a computer program

• A design which is widely advertised

Which of the following is an economic external factor that could affect product development?

• Change in pricing

• Change in taxation

• Copyright challenge

• Digital development

Which of the following correctly represents the stages of the product lifecycle?

• Development, Introduction, Growth, Maturity, Decline

• Development, Introduction, Maturity, Growth, Decline

• Introduction, Development, Growth, Maturity, Decline

• Maturity, Development, Introduction, Growth, Decline

A shoe shop is on a retail park that has two other shoe shops. It is moving to a retail park with only clothes and household goods shops. This will help the business to achieve:

• cheaper advertising

• lower production costs

• product differentiation

• reduced variable costs

Which of the following is a typical benefit to the business of the growth stage of the product lifecycle?

• Competition increases

• Profit margins improve

• Sales volumes peak

• Highest price is set

Which of the following would be considered an ‘extension strategy’?

• Advertising a weekend sale deal on an existing range of tablet cases

• Applying competitive pricing to a new range of smart watches

• Creating new packaging for an existing range of video games

• Developing a customer service strategy to be used by all staff